Federal Reserve Chairman Jerome Powell startled economists with a press conference Wednesday that was viewed as much more dovish than expected.

It was "12 doves a-leaping," said Michael Feroli, U.S. economist at JPMorgan Chase.

The Fed can't believe its luck. The data is going their way," said Krishna Guha, vice chairman of Evercore ISI.

The first dovish signals came in the Fed's statement and economic forecasts at 2 p.m. Eastern. First, the Fed penciled in three rate cuts in 2024 instead of two that were projected in September. The Fed also softened its tightening bias by saying they were mulling the need for "any" more hikes.

Then, half an hour later at his press conference, "Chair Powell did nothing to undo the impression of those signals," said Feroli, in a note to clients. Powell said Fed officials were starting to discuss when to cut rates.

The question of when it will be appropriate to begin dialing back the policy restraint" was clearly "a discussion for us at out meeting today," Powell said. Fed officials think the Fed is "likely at or near the peak rate for this cycle."

While Powell didn't take rate cuts "off the table," they are "collecting dust," said Michael Gregory, deputy chief economist at BMO Capital Markets.

Markets reacted with the 10-year Treasury yield BX:TMUBMUSD10Y falling to 4.025%.

Traders in derivative markets now see an 80% chance of the first rate cut in March, and now see five quarter-point cuts next year.

Matt Luzzetti, chief U.S. economist at Deutsche Bank, said the main thing learned from Wednesday's press conference was that Fed Gov. Chris Waller's dovish comments a few weeks ago were a reflection of the mainstream view at the central bank, rather than a dovish outsider.

In a speech late last month, Waller raised the possibility of a rate cut by spring if inflation keeps slowing.

Some economists think that March is too soon for a rate cut.

We still judge rate cuts will commence later rather than sooner, still by the end of the third quarter of 2024," Gregory of BMO Capital Markets said.

Feroli said he now sees the first rate cut in June, instead of his prior forecast of July, and predicted that the Fed will cut five times by the end of 2024.

Luzzetti of Deutsche Bank sees six rate cuts next year, but not beginning until June as the economy falls into a mild recession.

The Fed doesn't forecast a recession. Its rate cuts are purely a story of weakening inflation. If there is a recession, the Fed will cut very fast, Luzzetti said.

Wall Street Fed watchers are also divided. Some economists see as many as seven rate cuts next year and others just two.

Here's how some firms stack up.

Capital Economics: Seven 1/4-point rate cuts in 2024.

ING: Six 1/4-point rate cuts in 2024.

Nationwide: Four 1/4-point rate cuts in 2024. And a "mild recession.'

Citibank: Four 1/4-point rate cuts in 2024.

RSM: Four 1/4-point rate cuts in 2024

PNC Financial Services: Three 1/4-point rate cuts in 2024

Comerica: Three 1/4-point rate cuts in 2024

CIBC Economics: Two 1/4-point rate cuts in 2024.

Santander Capital Markets: Two 1/4-point rate cuts in 2024.